Elementary Statistics (12th Edition)

Published by Pearson
ISBN 10: 0321836960
ISBN 13: 978-0-32183-696-0

Chapter 5 - Discrete Probability Distributions - 5-2 Probability Distributions - Beyond the Basics - Page 209: 23


a)1000 ways b)$\frac{1}{1000}$ c)499 d)-50 cents e)Craps is better.

Work Step by Step

a) In each selection there are 10 ways to select, threfore the number of selections: $10\cdot 10 \cdot 10=1000$ ways. b) Out of the 1000 possibilities 1 possibility would win us the prize therefore the probability is:$\frac{1}{1000}$. c)net profit=winning-bet=500-1=499 d) Expected value: $500\cdot\frac{1}{1000}+(-1)\cdot \frac{1000}{1000}=0.5-1=-0.5=-50 cents$ e)The 1 dollar bet on craps is better, it's expected value of -1.4 cents is a lot more than the lottery's -50 cents expected value.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.